Moody's affirmed the ratings of Regions Financial Corp. and unit Regions Bank, following the affirmation of the bank's "baa1" standalone baseline credit assessment.

The rating agency affirmed the company's senior unsecured rating and long-term issuer rating of Baa2 and short-term issuer rating of P-2, among others. Moody's also affirmed several ratings of Regions Bank, including the Baa2 issuer rating, A2 long-term deposit rating and P-1 short-term deposit rating.

Moody's expects the company to maintain a solid balance sheet and further improve profitability. Despite the the planned reduction of the company's Common Equity Tier 1 capital ratio to 9.5%, capitalization will remain sound over the next 12 to 18 months, according to the rating agency.

The ratings outlook on both Regions Financial and Regions Bank was changed to positive from stable, reflecting the company's lower risk asset mix, its enhanced risk management, and prospects to improve profitability, Moody's said.